CONSTRUCTIONS METALLIQUES DU BERRY : revenue, balance sheet and financial ratios

In 2021, CONSTRUCTIONS METALLIQUES DU BERRY achieves revenue of 5.0 M€. Over the period 2018-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +9.2%. Vs 2020, growth of +120% (2.3 M€ -> 5.0 M€). After deducting consumption (741 k€), gross margin stands at 4.2 M€, i.e. a rate of 85%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 52 k€, representing 1.0% of revenue. Positive scissor effect: EBITDA margin improves by +5.1 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 65 k€, i.e. 1.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 193%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 7%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 14.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 119.16. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 34.4x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 63 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 42 days. The company must finance 21 days of gap between collections and payments. Inventory turnover is 175 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 17 days of revenue, i.e. 232 k€ to permanently finance. Notable WCR improvement over the period (-76%), freeing up cash.

Based on 56 transactions of similar company sales (all years), the value of CONSTRUCTIONS METALLIQUES DU BERRY is estimated at 244 149 € (range 136 851€ - 397 423€). With an EBITDA of 51 950€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.13x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.
Medium reliability: estimate to be confirmed with in-depth analysis.